Reuters plunges to all-time low

REUTERS shares today slumped below the price they were floated at 16 years ago on fears of a grisly trading statement next week.

A flurry of broker downgrades sent the shares down 9p to 178 1/2p, below the 179p offer price in June 1986 and one-ninth of its peak of the tech bubble of early 2000. They later recovered to be unchanged on the day at 188p.

Job losses across the major investment banks have sharply reduced the need for trading screens, which is Reuters core business.

The business information group is due to report third-quarter revenues next Wednesday and dealers are bracing for gloomy guidance on prospects.

Merrill Lynch today lowered its forecast for the company's profits next year from £388m to £355m while JP Morgan expects the sales famine for Reuters to last longer than it previously thought.